Authors Chuck Royce, Chairman, Portfolio Manager, Royce Investment Partners Chris Clark, Chief Executive Officer, Co-Chief Investment Officer, Royce Investment Partners, Francis Gannon, Co-Chief Investment Officer, Managing Director, Royce Investment Partners, Royce Investment Partners 2021 was a year of decelerating optimism for many small-cap investors as performance momentum slowed as the weeks passed by between April…
Inflationary pressures have been building globally for the past year, as seen in higher food, energy and transport costs. This is most evident in the US where pandemic-driven supply chain issues and prices for rental accommodation, used cars and some foods helped to push the January headline inflation reading to an annualised rate of 7.5%,…
Reimagining portfolios for tomorrow’s reality Increasing inflation volatility represents the greatest challenge to investors for a generation. A new regime and the collapse of the financial market status quo requires us to reimagine portfolios. No longer can we rely on yesterday’s logic. “Inflation is the endgame. Just brace for inflation volatility first.” Do we still…
With our long period of near-zero interest rates seemingly at an end, every investor’s attention turns to the balance of their portfolio. Conventional wisdom is that now is the time to rethink exposure to real estate investments because rising interest rates are a drag on property values and rising inflation benefits other asset classes. There…
Sentiment is shifting in the discussion about the outlook for gold. The view that the gold price will continue to weaken, as it has done for much of this year, has given way to more positive forecasts. The reason is rising inflation, and the fact that inflation-adjusted bond yields are in negative territory – a…
“The previous cycle was the longest in history and it ended only due to the exogenous shock of the pandemic”. This is one of the key takeaways from global multi-asset Neuberger Berman’s latest outlook paper titled ‘Solving for 2022’. The events of 2020 and 2021 have naturally pushed the memories of 2019 further away, but for…
For most of 2021, global credit investors have been basking in the goldilocks environment of accommodative Fed policy, generous fiscal stimulus, and a rather strong economic recovery, despite some COVID-19 bumps along the way. The strong performance of credit risk assets has elevated valuation levels. As the prospects of Federal Reserve tapering, higher inflation, peak…
The UN’s Sustainable Development Goals have captured investors’ imagination as a means of helping society while also capturing decent returns. And they’re gaining in popularity, with billions in inflows into strategies that follow them in the six years since their launch. The 17 goals are unique, as it is the first time in history that…
Where commercial real estate (CRE) debt fits in a defensive portfolio with an income focus The problem with bonds Times are tough for investors or advisers looking to add value through a defensive portfolio. Defensive, or income assets, aim to provide income rather than capital growth. They generally carry a lower investment risk than shares…
In the 1950s American economist Harry Markowitz opined that diversification was the only “free lunch” in investing: a reference to the role of the tactic in protecting returns and building wealth for no additional financial outlay. The Nobel Laureate may have changed his mind after witnessing the hedonistic vibe of the 1980s, when business lunches…
